Quote (JohnnyMcCoy @ 5 May 2023 14:05)
the process will take a good while, but overall i would agree
the dollar will inevitably join the former world reserve currencies and get replaced
Sorry, but anyone claiming that the dollar will lose its status as one of the world's reserve currencies anytime soon is either clueless or a fearmonger. The US still have far and away one of the top3 economies in the world. Despite India's tremendous growth and potential, the gap to the US, China and the Eurozone is still huge. Yes, the USD will probably lose its status as THE hegemonic currency of the world, but it won't be replaced by any other hegemon.
The Yuan and Rupees still have a long long way to go until proper "currency pluralism" is achieved.
Quote (Goomshill @ 5 May 2023 09:52)
https://www.msn.com/en-in/news/world/russia-and-india-reportedly-halt-talks-over-using-rupees-for-trade-with-moscow-preferring-to-be-paid-in-chinese-yuan/ar-AA1aK6VcRussia and India abandon the deal in progress to buy oil for rupees, and instead are going to use... the Yuan
After all, how much trust can Russia have in holding large reserves of rupees, when the west is tugging so hard on India to join the new iron curtain? If anything, a large Russian trade imbalance with India actually counterintuitively results in a perverse motivation for India to betray Russia and lock out their banking sector, because in effect India would be getting away with stealing that much oil- unspendable rupees making it an exchange of goods for monopoly dollars. So where does Russia turn for a reserve currency, when the dollar is now weaponized and unaligned countries can't be trusted? The new petroyuan
As we've said a bunch, this is the real time end of the american petrodollar and the bedrock that has supported american economic hegemony post WW2, and its entirely of our own doing. Really, Joe Biden's doing. He's crashing this plane
If the Indians think that China and Russia are more trustworthy not to weaponize their currency or economic might, then so be it.
Also, isn't it kind of ironic to blame the West for tugging on India when Russia and China are doing the same?
At the end of the day, the Yuan has far more practical use for Russia than Rupees. They're importing a fuckton of industrial goods from China, but far less from India. And like I alluded to in my reply to Johnny, the Yuan is far better positioned to become one of the world's reserve currencies. I'm not discounting the geopolitical considerations going into this decision, it's just that running up a huge surplus of Rupees would be a bad idea for Russia even if they didn't have to fear India betraying them "due to Western pressure".